Green credit guarantee for banks

The green credit guarantee facilitates access to financing for exporting companies and their subcontractors for investments in green transition of the production or for working capital needs in green business operations.

Credits that can be guaranteed

EKN can issue a green credit guarantee when a lender grants a loan of less than SEK 500 million to a business operation or investment that contributes positively to climate change. The assessment is based on the activities included in the EU taxonomy.

The guarantee is issued to Swedish or foreign banks that issue loans to Swedish exporting companies and their subcontractors - regardless of whether the company is investing in green transition of its business operations or wants to expand its already green business operations. The credit can finance short-term working capital needs as well as constitute an investment credit with the aim of financing increased production capacity, which contributes positively to climate change. The maximum tenor may normally not exceed ten years.

The financing must be separate from the borrower's need for more long-term risk capital or equity needed to, for example, establish itself as an exporter. Normally, EKN cannot guarantee already issued credits, as the guarantee is intended to cover new exposure by the lender.

Export requirement

If the application refers to a loan that does not constitute financing of a specific export transaction, at least 25 percent of the borrower's turnover must consist of exports of Swedish goods or services. If the borrower is a subcontractor, at least 25 percent of the exporting company's turnover must consist of exports of Swedish goods or services.